Recently, HTX Ventures, the global investment division of Huobi HTX, released the latest research report The Rise of Yield-Bearing Currency: How Crypto Neobanks Are Challenging the Traditional Banking Model. The report suggests that the global financial system stands at the brink of a structural reorganization - on one side is the old system centered around $103 trillion in customer deposits and banking licenses, and on the other is the new system centered around stablecoins, wallets, custody, and on-chain yield protocols. As dollar assets begin to exist in "on-chain form" while simultaneously possessing the ability to hold, flow, and generate returns, the deposit model that traditional banks relied on is facing a historic repricing. The core driving force behind this reorganization is that stablecoins are transitioning from a "payment tool" to the role of "yield-bearing dollar accounts," with the financial form that is taking on this transition being the "crypto neobank."

Two Generations of Digital Banks: From Experience Upgrade to Underlying Reconstruction

The evolution of digital banking has gone through two waves. The first wave, represented by fintech neobanks like Chime, Nubank, Revolut, and Monzo in the 2010s, changed the "ways of using" banks. However, no matter how smooth the front end was, the backend funds clearing still relied on traditional banking systems such as ACH and SWIFT, essentially providing a user experience layer over the traditional banking system.

What truly holds structural significance is the crypto neobanks represented by Coinbase, Cash App, Robinhood, and Crypto.com. Changes in this phase touch upon the definition of financial assets and their custody methods: native custody accounts replace liability records on bank ledgers, stablecoin payment networks bypass traditional wire transfer cycles, and integrated yield products directly convey the real returns of underlying assets to users. It no longer changes "how banks are used," but rather "how money exists, flows, and generates returns."

Crypto neobanks are not a clearly defined type of institution, but a functional form. Among them, leading crypto exchanges are actively evolving into major participants in this sector through coin-earning businesses, stablecoin services, and on-chain wealth management products.

From Transaction Medium to Yield-Bearing Asset: The Functional Leap of Stablecoins

The establishment of crypto neobanks hinges on the fundamental change in the role of stablecoins themselves. As of March 2026, the global stablecoin market cap has surpassed $319 billion, with US Treasury Secretary Yellen predicting this figure could reach $3.7 trillion by the end of this decade. However, what is more noteworthy than the total growth is the functional positioning of stablecoins. In the early stages, stablecoins primarily fulfilled three functions: settlement assets between exchanges, dollar-denominated mediums for on-chain transactions, and "dollar substitutes" within the crypto ecosystem. But entering 2024, more and more users are not just "using stablecoins," but are starting to "hold stablecoins," gradually making it a part of asset allocation and cash management.

This transition is driven by dual changes in the macro interest rate environment and product forms. Compliant stablecoin issuers will allocate reserves in short-term US Treasuries and reverse repos, naturally connecting the entire system to US benchmark interest rates; meanwhile, platforms begin to package complex underlying asset allocations into simple "yield-bearing accounts,” changing the user experience from "participating in DeFi protocols" to "putting dollars into an account that can be withdrawn anytime and generate returns."

Restructuring of Yield Distribution: From Bank Retention to User Distribution

The most critical change occurs in the way yields are distributed. Traditional banks retain interest spread within their balance sheets by absorbing low-cost deposits and allocating high-yield assets, allowing users to share only a small portion of it. In the stablecoin and on-chain yield system, the yields that would traditionally be absorbed by the banking system are now being conveyed to end holders in a more direct manner, with annualized returns generally reaching 3% to 8%.

This change is clearly presented in the coin-earning businesses of leading exchanges. As an important participant in the crypto neobanking sector, Huobi HTX's practices in earning products reflect the typical form of "yield-bearing dollars" in an exchange environment: on the liquidity level, the platform supports fund deposits and withdrawals at will, in contrast to the long-term fixed period lock-in of traditional banks; on the yield level, Huobi HTX has achieved hourly compound interest calculation, significantly improving the utilization efficiency of long-tail funds compared to traditional banks that calculate interest monthly or quarterly; on the product level, simple coin-earning, structured products, and on-chain products span over 300 types of cryptocurrencies, and structured derivatives such as "dual-coin win" meet the hedging needs of professional funds. HTX Ventures believes that this combination of "high-frequency compound interest + flexible liquidity + diverse asset provision" is one of the core competitive advantages that distinguish crypto neobanks from traditional savings products.

Three Possible Pathways for Future Evolution

Where will this interplay of underlying monetary forms and business models ultimately lead? The report outlines three possible pathways: crypto neobanks achieve complete victory, with stablecoins dominating the global payments and savings markets; traditional banks successfully retaliate through tokenized deposits (like JPMD from JPMorgan), relegating crypto infrastructure to the role of a technological service for banks; or a hybrid financial stack takes shape - non-bank stablecoins and tokenized deposits coexist, traditional commercial banks retain their core position in credit creation, but the underlying core ledgers and on-chain protocols are deeply integrated.

From the perspective of current regulatory dynamics and the speed of industry evolution, the reality of the third pathway seems the most likely. The regulatory tug-of-war surrounding the "GENIUS Act," the "CLARITY Act," the EU MiCA, and Hong Kong stablecoin regulations indicates that the struggle over "currency definition rights" will not end in one side's total victory, but will create a new structure of multi-layer coexistence through institutional coordination.

Conclusion

The core of this transformation lies not in whether stablecoins can continue to grow, but in how the relationship between currency, deposits, returns, clearing, and regulation will be redefined. For crypto platforms, the competition's outcome relies not only on yield levels but also on whether they can establish verifiable security barriers and institutional trust beyond yields. The true winners will be those participants who can bridge traditional finance and the on-chain world.

From the high-frequency compounding and flexible liquidity of coin-earning products to long-term investments and incubation in global crypto financial infrastructure, what Huobi HTX and HTX Ventures practice is precisely this kind of "bridge builder" role: finding balance between compliance and innovation, allowing users to enjoy the efficiency and returns of the on-chain world while also obtaining the security barriers and trust foundation provided by leading platforms.

About HTX Ventures

HTX Ventures is the global investment division of Huobi HTX, integrating investment, incubation, and research to identify the best and smartest teams globally. As an industry pioneer, HTX Ventures possesses over 11 years of experience in blockchain development, adept at identifying cutting-edge technologies and emerging business models in the field. To drive growth in the blockchain ecosystem, we provide comprehensive support for projects, including financing, resources, and strategic advice.

HTX Ventures currently supports over 300 projects covering various blockchain fields, with some high-quality projects already traded on Huobi HTX. Additionally, as one of the most active FOF funds, HTX Ventures invests in 30 top global funds and collaborates with leading blockchain funds such as Polychain, Dragonfly, Bankless, Gitcoin, Figment, Nomad, Animoca, and Hack VC to jointly build the blockchain ecosystem. Visit us.

For investments and collaborations, please feel free to contact VC@htx-inc.com